Africa’s richest man, Alhaji Aliko Dangote, is embroiled in a fresh controversy over allegations of financial misconduct concerning the cost of constructing a fertilizer plant in Ibeju Lekki, Lagos. Reports suggest that Dangote may have inflated the project’s cost from an initial $40 million (₦63.6 billion) to a staggering $150 million (₦238.5 billion), leading to significant concerns from the Nigerian government and contractors involved in the project.
The 50-kilometer gas pipeline, which supplies the fertilizer plant, was constructed under a Build, Operate, and Transfer (BOT) arrangement. However, sources revealed to Trojan News Media that Dangote has allegedly withheld payment to the contractors for over four years. This situation has reportedly driven one contractor to bankruptcy, leading to his death in Lebanon, while another has relocated to Canada due to mounting debts.
A contractor still in Nigeria has accused Dangote of ruining his business, claiming that the billionaire has not only failed to pay contractors but also continues to utilize gas from the Nigerian Gas Company (NGC) without proper remittance. The contractor also alleges that the claimed construction costs of the fertilizer plant are grossly inflated.
The fertilizer plant, now generating approximately ₦160 billion ($100 million) monthly from exports to countries like Brazil and the U.S., remains a point of contention as contractors demand payment and an independent investigation into the alleged financial improprieties.
In a related development, the much-anticipated Dangote Refinery, initially projected to cost $9 billion, has reportedly ballooned to over $19 billion and is plagued by delays. Critics, including environmentalists and economists, have raised concerns about the refinery’s environmental impact, economic viability, and its potential effects on Nigeria’s economy.
The controversy deepened with recent reports that the Federal Government has instructed the Nigerian National Petroleum Company (NNPC) to sell crude oil to the Dangote Refinery exclusively in naira, a move seen by some as part of a broader strategy between Dangote and President Bola Ahmed Tinubu. The refinery, built on public funds, is now facing calls to be renamed as the Nigerian National Refinery (NNR).
Amid these ongoing issues, Dangote’s exposure of a refinery linked to the Tinubu family in Malta has further complicated the situation, highlighting potential conflicts of interest and deepening public scrutiny.
As these allegations unfold, all eyes are on Alhaji Dangote to see how he will navigate the mounting pressures and accusations surrounding his business practices.
